The latest USCCG white paper explains how PE firms can make substantial gains in EBIDTA from timely visibility into the causative drivers, or key performance indicators, at portfolio companies.
Current economic conditions demand increased levels of interaction between private equity firms and their portfolio companies, according to George W. Coffey, president of USC Consulting
Group, LLC (USCCG). This is critical for recognizing declining business conditions early enough to make adjustments early enough to maintain asset performance.
"When business conditions begin to erode," says Mr. Coffey, "the difference in value between early recognition, accompanied by timely action, and a delayed response is substantial and
warrants instituting fundamental reporting disciplines.
"Private equity firms must be able to look into their businesses at multiple levels. This requires establishing and using a set of key operational metrics that will provide real-time
visibility into the state of operational performance."
He cites two problems that PE firms face when attempting to attain this kind of visibility: limited accessibility to data and the discipline to regularly review the metrics and hold the
appropriate parties accountable for meeting goals.
To overcome these, Mr. Coffey recommends that PE companies adopt the methodologies and technologies that can bridge the gap between line and PE managers. He provides an in-depth look at
how this is done in a white paper he co-authored with USCCG Director of Finance and Administration Tom Klebeck.
Timely Visibility Improves Performance of Portfolio Holdings speaks directly to the opportunities available to PE firms for shoring up troubled holdings and sustaining or improving
stronger portfolio companies. Gains from such timely visibility into the causative drivers, or key performance indicators, explains Mr. Klebeck, can drive as much as 10 to 20 percent
improvement in EBIDTA.
For more on USCCG's in-depth insight on how PE firms can capture impressive financial rewards, access the white paper at www.usccg.com.
About the Authors
In addition to his overall management responsibilities, USCCG President George Coffey works closely with the investment community, including private equity and investment banking, as well
as seeking and negotiating possible acquisitions to enhance USCCG's product offerings and fuel its growth. He currently chairs the Strategic Planning Committee and is a member of the
company's Executive Board with responsibility for policy matters. Mr. Coffey began his career with USCCG in 1978 as a project consultant in operations. His responsibilities grew with
appointments to project manager, operations manager, business development executive, and regional manager/analyst. George became a partner in 1989, an executive partner in 1995, a senior
partner in 1999, and president in 2006.
USCCG Director of Finance and Administration Tom Klebeck is responsible for broad financial oversight of firm's activity, as well as targeted financial analyses for specific clients. Mr.
Klebeck was most recently a financial consultant for VantagePointe Solutions in Orlando, FL. He also founded three successful companies, including a real estate development and investing
company. Prior to that he spent 12 years with Equifax in Tampa and Atlanta, where he rose through various controller and vp-finance roles to become vice president of operations. He was
also a founding officer of the firm's multi-billion-dollar information services spin-off, ChoicePoint. Mr. Klebeck has earned a solid reputation as a fierce cost controller and profit
improvement specialist.
About USC Consulting Group (USCCG): USCCG is an independent operations management consulting firm with nearly 40 years' experience in the area of business performance improvement. It
combines extensive subject matter expertise with enabling technology to drive and sustain superior operational and financial results. The firm offers an array of services that include Six
Sigma, Lean transformation, supply chain optimization, process improvement, project management, value stream mapping, training and facilitation, blended learning solutions, modeling and
simulation, world class maintenance management, and asset performance management. USCCG is a Microsoft Managed partner headquartered in Tampa, FL. It also has offices in Chicago,
Montreal, and Toronto. For more information, visit www.usccg.com.